Uranium poised for growth in 2021

JOHANNESBURG (miningweekly.com) – Potential further suspensions in the operations of uranium mines this year as a result of second or even third waves of Covid-19 infections could drive the uranium price higher.

During a webinar hosted by Africa Mining Forum on February 25, Canada-listed GoviEx Uranium CEO Daniel Major said uranium was poised for significant demand growth and a potential bull market this year. Uranium is currently trading at a spot price of about $30/lb, which is an increase on the pre-Covid-19 spot price of about $24/lb.

While the uranium market has not been in the favour of producers for quite some time, the shorter-term fundamentals of a tighter market is starting to favour producers, which may bode well for the uranium price over the medium to long-term. A higher uranium price will enable companies with development assets to raise the necessary funding to build their mines.

This could see uranium producers […]

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